CDA has become aware that the Bureau of Alcohol, Tobacco and Firearms (ATF) has begun to enforce more aggressively a decades old law known as the Trafficking in Contraband Cigarettes and Smokeless Tobacco Act. This can affect all distributors, but especially those which have a cash and carry business operated from their warehouses, branches, offices, or stores.

With regard to any sale, shipment, or distribution of over 10,000 cigarettes (50 cartons) or over 500 single-unit consumer-sized cans or packages of smokeless tobacco in a single transaction at a distributor’s place of business, the distributor must obtain (and keep) the following information from the purchaser:

the name, address, destination (including street address), vehicle license number, driver’s license number, signature of the person receiving such cigarettes, and the name of the purchaser;

a declaration of the specific purpose of the receipt (personal use, resale, or delivery to another); and

a declaration of the name and address of the recipient’s principal in all cases when the recipient is acting as an agent.

This rule does not apply to duly licensed distributors who deliver to the recipient’s place of business stamped cigarettes or smokeless tobacco on which applicable taxes have been paid. This rule requiring license numbers and driver’s licenses applies when cigarettes or smokeless tobacco is bought at the distributor’s place of business.

CDA advises that ATF has advised that its enforcement of the Cigarette and Smokeless Tobacco Contraband Act is expected to expand throughout the entire United States. ATF stated that to date, its activities have been primarily centered around Virginia and North Carolina on criminal oriented activities.

ATF to date is not advising distributors in advance when it may arrive at a distributor’s business to review the records containing the information set out here. CDA will continue to monitor the situation and will advocate—-at a minimum—that the ATF advise in advance when it may visit a distributor’s place of business.

If you sell cannabis or cannabis products, you must register with the California Department of Tax and Fee Administration (CDTFA) for a seller’s permit. Cannabis cultivators, processors, manufacturers, retailers, microbusinesses, and distributors making sales are required to obtain and maintain a seller’s permit as a prerequisite for applying for a license with the California Department of Food and Agriculture, the California Department of Consumer Affairs, or the California Department of Public Health.

Distributors of cannabis and cannabis products must also register with the CDTFA for a cannabis tax permit to report and pay the two new cannabis taxes to the CDTFA. The cannabis tax permit is in addition to your seller’s permit.

Beginning January 1, 2018, two new cannabis taxes are in effect:

A 15 percent excise tax is imposed upon purchasers of cannabis and cannabis products. Retailers are required to collect the excise tax from the purchaser and pay it to the cannabis distributor.

A tax on the cultivation of cannabis that enters the commercial market is imposed upon cultivators. Cultivators are required to pay the cultivation tax to either a distributor or a manufacturer depending upon the nature of the transaction. The cultivation tax rates are:

$9.25 per dry-weight ounce of cannabis flowers, and

$2.75 per dry-weight ounce of cannabis leaves.

Additional categories and rates may be specified at a later date.

All cannabis businesses making sales are required to:

Register online with the CDTFA for a seller’s permit.

File sales and use tax returns electronically and pay any sales and use tax to the CDTFA. Even if none of your sales are subject to sales tax, you are still required to file a return and report your activities on your return to the CDTFA.

In addition, if you are a cannabis distributor, the following requirements apply to you:

Prior to January 1, 2018, register online with the CDTFA for a cannabis tax permit. (Registration will be available in November 2017.)

Beginning January 1, 2018, collect the excise tax from retailers you supply.

Beginning January 1, 2018, collect the cultivation tax from cultivators or manufacturers that send or transfer cannabis and cannabis products to you.

File both your cannabis tax and sales and use tax returns electronically and pay any tax amounts due to the CDTFA.

For More Information: Read our online Tax Guide for Cannabis Businesses. We will continually update the guide as we receive more information about taxes impacting the cannabis industry.

If you have additional questions, you may call our Customer Service Center at 1-800-400-7115 (TTY:711) Monday through Friday, 8:00 a.m. to 5:00 p.m. (Pacific time), except state holidays.

SB 1400 (Wieckowski) – would define “retail location” under the Cigarette and Tobacco Products Licensing Act to mirror the definition of a “tobacco store” under the Stop Tobacco Access to Kids Enforcement Act.

This would limit the sale of tobacco products to locations that primarily sell tobacco products and generate more than 60% of gross revenues from tobacco products and paraphernalia.

According to the Board of Equalization, this change is expected to prohibit about 30,000 retailers including grocery stores, C-stores, gas stations and liquor stores from selling tobacco products.

Please format the attached letters on your letterhead and send it back to us so that we may distribute it for you. Please fill out the information in parentheses below for your company. You can fax your letter to Nancey Cain at 916-446-5961 or send it via email to ncain@lobbycal.com.

The Governor also vetoed ABX 2-10 which expanded taxing authority of tobacco to local government. CDA actively opposed ABX2-10 and it was our first priority for a veto.

Although we disagree with his signature on SBX2-5 and SBX2-7, we appreciate his decision to reject ABX2-10.

AB X2-7 (Stone, Mark D) Smoking in the workplace.(Chapter Number: 4)
Current law prohibits smoking of tobacco products inside an enclosed space, as defined, at a place of employment. The violation of the prohibition against smoking in enclosed spaces of places of employment is an infraction punishable by a specified fine. This bill would expand the prohibition on smoking in a place of employment to include an owner-operated business, as defined. This bill contains other related provisions and other current laws.

AB X2-9 (Thurmond D) Tobacco use programs.(Chapter Number: 5)
Would expand eligibility for funding for the tobacco use prevention program to include charter schools. The bill would require the State Department of Education to require that all school districts, charter schools, and county offices of education receiving funding under the program adopt and enforce a tobacco-free campus policy prohibiting the use of products containing tobacco and nicotine, as specified, in and on the properties described above and would, in addition, prohibit the use of tobacco and nicotine products in a county office of education, charter school or school district-owned or leased building, on school or district property, and in school or district vehicles without regard to whether those entities receive funding.

ABX2-11 (Nazarian D) Cigarette and tobacco product licensing: fees and funding.(Chapter Number: 6)
The Cigarette and Tobacco Products Licensing Act of 2003 requires retailers of cigarettes and tobacco products to obtain a separate license for each retail location from the State Board of Equalization, which is issued upon receipt of a completed application and payment of a one-time fee, unless specified conditions apply. This bill would require a fee of $265 to be submitted with each license application, as described above.

SBX2-5 (Leno D) Electronic cigarettes.(Chapter Number: 7)
Would define the term “smoking” for purposes of the STAKE Act. The bill would also change the STAKE Act’s definition of “tobacco products” to include electronic devices, such as electronic cigarettes, that deliver nicotine or other vaporized liquids, and make furnishing the tobacco product to a minor a misdemeanor. This bill contains other related provisions and other existing laws.

SBX2-7 (Hernandez D) Tobacco products: minimum legal age.(Chapter Number: 8)
Current makes every person, firm, or corporation that knowingly or under circumstances in which it has knowledge, or should otherwise have grounds for knowledge, sells, gives, or in any way furnishes to another person who is under 18 years of age any tobacco, cigarette, cigarette papers, blunts wraps, or any other preparation of tobacco, or any other instrument or paraphernalia that is designed for the smoking or ingestion of tobacco, products prepared from tobacco, or any controlled substance, subject to either a criminal action for a misdemeanor or to a civil action brought by a city attorney, a county counsel, or a district attorney, punishable by a fine, as specified. This bill would extend the applicability of those provisions to persons under 21 years of age.

ABX2-10 (Bloom D) Local taxes: authorization: cigarettes and tobacco products
Would authorize, on and after January 1, 2017, the board of supervisors of a county or city and county to impose a tax on the privilege of distributing cigarettes and tobacco products in the county or city and county, including within an incorporated city within the county, and would make conforming changes. This bill would define “distributing” to mean making a sale of cigarettes or tobacco products in a county or city and county that has not been taxed by a cigarette or tobacco products tax ordinance of that county or city and county. This bill contains other related provisions and other existing laws.

The Cigarette and Tobacco Products Licensing Act of 2003 requires the State Board of Equalization to administer a statewide program to license manufacturers, importers, distributors, wholesalers, and retailers of cigarettes and tobacco products. Under existing law, a violation of this act is a misdemeanor.

This bill would expand the definition of tobacco products for purposes of that act to include electronic cigarettes, as defined, thereby subjecting manufacturers, importers, distributors, wholesalers, and retailers of electronic cigarettes to the same licensing requirements imposed pursuant to that act on manufacturers, importers, distributors, wholesalers, and retailers of tobacco products. By broadening the act to apply to manufacturers, importers, distributors, wholesalers, and retailers of electronic cigarettes, this bill would expand the scope of an existing crime, thereby imposing a state-mandated local program.

The Cigarette and Tobacco Products Tax Law, the violation of which is a crime, imposes a tax on distributors of cigarettes at the rate of $0.87 per package of 20 cigarettes and a tax on distributors of tobacco products, based on wholesale cost, at a rate determined annually that is equivalent to the combined rate of all taxes imposed on cigarettes, and at a rate equivalent to $0.50 per package of 20 cigarettes. Revenues from taxes imposed under this law are deposited in specified accounts. These taxes are inclusive of the taxes imposed under the Tobacco Tax and Health Protection Act of 1988 (Proposition 99) and the California Families and Children Act of 1998 (Proposition 10).

Order compliance technology now for your 2008 transport refrigeration units (TRU or reefer) to beat the purchase order deadlines.

August 31st is the purchase order deadline for new replacement TRUs and TRU generator sets. Order now to avoid penalties due to manufacturer or installer delay. Model year 2008 engines/units must meet the TRU Regulation’s in-use performance standards by December 31, 2015. It is probably too late to order refrigerated trailers due to long backlogs at refrigerated trailer manufacturers.

The California Air Resources Board (ARB) recommends that TRU and TRU generator set owners take action now to order compliance options to ensure TRU model year 2008 engines (or units manufactured in 2008) comply with in-use performance standards by the end of 2015. Please be aware that replacement engines may no longer be a compliance option because replacement engines must be cleaner than the old engine being replaced and there is no replacement engine that fits and functions that is cleaner than an MY 2008 engine (see TRU Advisory 13-18, page 7 for more detailed explanation at: http://www.arb.ca.gov/diesel/tru/advisories.htm).

The TRU Regulation allows compliance extensions if delivery or installation is delayed; but, to qualify for these extensions, the unit must be registered in ARB’s Equipment Registration (ARBER) system and purchase orders must be placed early enough to take into account long order backlogs, delivery, installation, holiday, and the typical year-end compacted schedules. The TRU Regulation has the following purchase order deadlines:

For engine replacements and unit replacements: By the end of August — four months ahead of the compliance deadline; and

For verified diesel particulate filter retrofits: By the end of October — two months ahead of the compliance deadline.

Owners must exercise due diligence in attempting to comply by the end of 2015. Due diligence means conducting the compliance process with a measure of prudence, responsibility, and diligence that is expected from, and ordinarily exercised by a reasonable and prudent person under the circumstances. For example, start the research, budgeting, and financing well in advance of the compliance deadline, and purchase the compliance technology before the purchase order deadline. The compliance extension application (with attached supporting documentation that demonstrates due diligence was used) must be received at ARB by December 31, 2015.

All model year 2007 and older engines (or units manufactured in 2007 or earlier) should be in compliance now. Please note that trailer manufacture year and in-service dates are not used to determine compliance dates. Noncompliant model year 2007 and older TRU/TRU genset engines/units must not be operated in California unless they are brought into compliance immediately.

If you have questions about in-use performance standard compliance, registration in ARBER, or in-use compliance extensions, please call the TRU Help Line at 1-888-878-2826 or call 1-916-327-8737.

Background: TRUs are refrigeration systems powered by integral diesel internal combustion engines designed to control the environment of temperature-sensitive products that are transported in trucks, trailers, shipping containers, and railcars. The emissions from these units are a source of unhealthful air pollutants including particulate matter, toxic air contaminants, nitrogen oxides, carbon monoxide, and hydrocarbons, that all pose a potential threat to both public health and the environment. These units often congregate in large numbers at California distribution centers, grocery stores, and other facilities where they run for extended periods of time to ensure their perishable contents remain cold or frozen. These distribution and loading facilities are often in close proximity to schools, hospitals, and residential neighborhoods. In 2004, the TRU Airborne Toxic Control Measure (ATCM) was adopted by the Board to reduce diesel particulate matter emissions from TRUs and TRU gen set engines. Amendments were adopted by the Board in November 2010 and October 2011.

It is with deep sadness for the Board of Directors of the California Distributors Association to notice the passing of John D. “Jack” Kelly.

Mr. Kelly was appointed Executive Director or the California Association of Tobacco Distributors in 1960 a position he held until 1977 when he accepted the position of Senior Vice President of State Activities for the Tobacco Institute. Jack retired from the Tobacco Institute to Chapel Hill, North Carolina in 1988.

Mr. Kelly was preceded in death by his wife Joan Booth Kelly and is survived by his daughters Carolyn Kelly Hayes, her husband Stuart Hayes; Laura Kelly Goode and her husband Jay Goode and his granddaughter Sarah Hayes.

A mass in remembrance of Mr. Kelly is set for 2:00 pm., June 5, 2015 at Thomas More Church, Chapel Hill, North Carolina.

California has the nation’s second-lowest rate of smoking and one of its lower rates of taxing cigarettes, but also has one of its highest rates of cigarette smuggling, a new nationwide study contends.

The study implies that California’s proximity to Mexico, where cigarette prices are about one-third lower, makes it a major destination for smuggled smokes.

The new data provide fuel for what may be a new debate over raising California cigarette taxes, currently 87 cents a pack, the 18th-lowest such tax in the nation. Anti-smoking groups are considering a cigarette tax measure for the 2016 ballot.

The Tax Foundation and Michigan’s Mackinac Center for Public Policy issued the annual report on cigarette smuggling, saying that generally, the highest rates are found in states with the highest cigarette taxes and therefore highest consumer costs.

New York, where a pack of cigarettes can cost over $15, thanks to the nation’s highest state cigarette tax and an additional levy by the City of New York, has the nation’s highest incidence of smuggling with an estimated 58 percent of cigarette demand being met by smuggled smokes, the study found.

California has the 6th-highest rate of smuggling, the study found, at 31.5 percent despite its much-lower tax, with nearly all of the state’s traffic coming from either Canada or Mexico, presumably the latter. All other states with high smuggling rates have taxes that are much higher than California’s.

Although Nevada is believed to be a net exporter of smuggled smokes, its tax, 80 cents a pack, is scarcely lower than California’s. Thus its outflow of cigarettes is likely to be mostly in the luggage of visitors from high-tax states, particularly those on the East Coast.

California’s rate of smoking, which a recent Gallup Poll pegs at 15 percent of adults, is lower than any other state except Utah.

“E-cigarettes contain nicotine and other harmful chemicals, and the nicotine in them is as addictive as the nicotine in cigarettes,” said Chapman. “There is a lot of misinformation about e-cigarettes. That is why, as the state’s health officer, I am advising Californians to avoid the use of e-cigarettes and keep them away from children of all ages.”

E-cigarettes are battery operated devices, often designed to resemble cigarettes that deliver a nicotine-containing aerosol. E-cigarettes have many names, especially among youth and young adults, such as e-cigs, e-hookahs, vape pens, vape pipes or mods. The liquid solution (e-liquid) used in e-cigarettes typically contains nicotine and is commonly referred to as “e-juice.” It is sold in a variety of candy, fruit and alcohol flavors.

Studies find a significant rise in e-cigarette use each year, especially among young adults and teens. New California data shows that e-cigarette use among young adults, ages 18 – 29, increased from 2.3 percent in 2012 to 7.6 percent in 2013. Young adults in California are three times more likely to use e-cigarettes than those 30 and older. Likewise, e-cigarette use among U.S. teens has surged. In 2014, teen use of e-cigarettes nationally surpassed the use of traditional cigarettes, with more than twice as many 8th and 10th graders reporting using e-cigarettes more than traditional cigarettes. Among 12th graders, 17 percent reported currently using e-cigarettes vs. 14 percent using traditional cigarettes.

Along with an increase in use, there has been a spike in calls to the California poison control centers related to exposures to nicotine-containing e-liquids and accidental e-cigarette poisonings – from 19 in 2012 to 243 in 2014. More than 60 percent of all those e-cigarette related calls involve children 5 years and under.

“The e-cigarette cartridges and e-liquid bottles are not equipped with child-resistant caps, often leak, creating a poisoning risk by ingestion or by skin or eye contact,” warned Dr. Chapman. “These products are not safe.”

Highlights of the report include:

Exposure to nicotine during adolescence can harm brain development.

E-cigarettes do not emit a harmless water vapor, but an aerosol that has been found to contain at least 10 chemicals that are on California’s Proposition 65 list of chemicals known to cause cancer, birth defects or other reproductive harm.

E-cigarettes are not FDA-approved cessation aids.

Between 2011 and 2013, e-cigarette advertising jumped more than 1,200 percent and used marketing tactics to appeal to youth. Those tactics include the use of cartoon characters which is prohibited in traditional cigarette advertising.

Chapman also announced that the public education and media efforts to counter e-cigarettes are just beginning. CDPH intends to partner with health, medical, child care and education communities to educate consumers about the dangers of e-cigarettes, and plans an advertising campaign in the near future.

The California Tobacco Control Program was established by the Tobacco Tax and Health Protection Act of 1988. The act, approved by California voters, instituted a 25-cent tax on each pack of cigarettes and earmarked five cents of that tax to fund California’s tobacco control efforts. These efforts include supporting local health departments and community organizations, a media campaign, and evaluation and surveillance. California’s comprehensive approach has changed social norms around tobacco use and secondhand smoke. It is estimated California’s tobacco control efforts have saved more than one million lives and have resulted in $134 billion worth of savings in health care costs. Learn more at TobaccoFreeCA.

No comments regarding the format of any of the 3 uniformity schedules. All comments relate to clarification of information requested.

Please provide draft “electronic filing Table of Codes” for each schedule so that we may review and consider programming implications of these tables.

We stress yet again the request to exclude “little cigars” from these schedules. Either that or request all taxing jurisdictions adopt a uniform definition of “cigarette”. Without this uniformity of definition it will be extremely difficult, if not impossible, to reconcile ending inventory across all taxing jurisdictions. This comment was echoed again and again by all AWMA distributors providing input to this response.

Please confirm that the intent of these uniformity schedules is to replace Cigarette, PACT and MSA/NPM filing requirements in each taxing jurisdiction in which these forms are adopted.

Please confirm that the purpose of these forms is to disclose the physical movement of cigarette inventory during the reporting period. That is, for the “Home” State the forms should disclose all cigarette inventory entering and leaving the distribution facility during the reporting period irrespective of when the related costs are posted through the Accounts Payable system. For an “out-of-State” filing, the reconciliation should be of that State’s stamped product.

The California Air Resources Board has issued Regulatory Advisory Mail-Out MSC# 12-26 to explain how the low rolling resistance tire requirements of the regulation will be implemented for (1) tractors that use 2 or more open shoulder drive tires and (2) 2011 and newer model year tractors and trailers that use retreaded tires.

The regulation requires tractors that use 2 or more open shoulder drive tires to use SmartWay verified low rolling resistance tires by January 1, 2013. This advisory clarifies that tractors using new non-SmartWay open shoulder drive tires that were manufactured prior to January 1, 2013, can continue to use those tires for the useful life of that tread, or until January 1, 2015, whichever comes first. Any new open shoulder drive tire manufactured after January 1, 2013, must be a SmartWay verified low rolling resistance tire. This advisory also clarifies that tractors using non-SmartWay open shoulder retreaded tires manufactured prior to January 1, 2014, to continue to use those tires for the useful life of that tread, or until January 1, 2016, whichever comes first. Any open shoulder retreaded drive tire retreaded after January 1, 2014, must be capped with a SmartWay verified low rolling resistance retread material on any casing.

The regulation requires 2011 model year and newer tractors and trailers to use SmartWay verified low rolling resistance tires beginning January 1, 2010. This advisory clarifies that 2011 model year and newer tractors and trailers using retreaded tires comprised of SmartWay casing capped with any retread material prior to January 1, 2013, can continue to use those tires for the useful life of the tread or until January 1, 2015 for tractors and January 1, 2017 for trailers, whichever comes first. Any tire retreaded after January 1, 2013 must be capped with a SmartWay verified low rolling resistance retread material on any casing.

Background

The Tractor-Trailer GHG Regulation (regulation) applies to 53-foot or longer dry van or refrigerated van trailers (box-type trailers) and the tractors that pull them on California highways.

The regulation requires tractor-trailers operating in California to use tractors and box-type trailers that utilize certain aerodynamic equipment and low rolling resistance tires, as verified by the U.S. EPA SmartWay program, to meet specified fuel efficiency improvements.

SACRAMENTO – The California Air Resources Board has extended the reporting deadline to September 1, 2012, for its greenhouse gas tractor-trailer regulation so that small fleets can take advantage of flexibility options.

The two-month extension pertains to owners of 20 or fewer 2010 and older model year 53-foot or longer box-type trailers that operate on California highways. Small fleets can include both dry and refrigerated van trailers.

“While we have granted businesses more time to report their data, we are still encouraging owners to register as soon as they have gathered the necessary information,” said Stephan Lemieux, manager of ARB’s on-road heavy-duty diesel section. “We have made the process as user-friendly as possible, so there is no reason to put it off until the last minute.”

Small fleet owners of 2010 and older model year trailers may choose one of two methods to bring their trailer fleets into compliance. The deadline extension applies to the second option, below.

Owners can:

Ensure their fleet is equipped with United States Environmental Protection Agency “SmartWay” verified aerodynamic equipment on their trailers, including side skirts and trailer tails, by January 1, 2013, or

They may report by September 1, 2012, to take advantage of the optional phase-in plan, which allows small fleets up to four years to comply.

Regardless of which method owners choose, they must also install fuel efficient, low-rolling resistance tires on their trailer fleets by January 1, 2017. For a list of accepted SmartWay verified equipment and to learn more about the SmartWay program, fleet owners can visit U.S. EPA SmartWay Equipment.

To report online at Tractor-Trailer GHG Reporting, owners will need to have some key information handy, including the trailer vehicle identification numbers, makes and model years, and license plate numbers. For refrigerated van trailers, the transport refrigeration unit (TRU) model year and engine model year are both required.

Aerodynamic technologies such as those included in the SmartWay program are designed to help reduce fuel consumption, saving owners money and helping to reduce our nation’s dependence on foreign oil. The program will deliver anticipated savings of about three billion gallons of diesel fuel by 2020 from nationwide operations. As a result, fleet owners can expect to see a quick return on their investment in trailer aerodynamic equipment and fuel efficient tires within one year at current diesel fuel prices, if they travel 100,000 highway miles per year.

The rule is also expected to help combat climate change by reducing carbon dioxide emissions nationwide by 33 million metric tons by 2020.

ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

Tobacco tax backers in California officially conceded defeat Friday in the tight Proposition 29 race after they determined the vote gap had simply grown too large to overcome.

The initiative is losing by 27,888 votes out of more than 5 million counted, a 49.7 percent to 50.3 percent divide, the Secretary of State’s Office reported this morning.

As counties tallied their remaining ballots after the June 5 election, the gap had steadily shrunk from about 60,000 votes down to 13,000 votes as recently as Wednesday. But the tide turned late this week, and there remain only 111,472 ballots left to tally, the Secretary of State’s Office showed.

Yes on 29 campaign manager Chris Lehman said the math showed it would almost certainly be too difficult to mount a comeback at this point because his side would need to win nearly 65 percent of the remaining ballots.

Proposition 29 would have raised tobacco taxes by $1 per pack of cigarettes and paid for cancer research, stop-smoking programs and related law enforcement efforts. Opponents said that the money could be better spent on solving California’s immediate budget problems and that it would create a new state bureaucracy. Tobacco companies funded virtually all of the statewide campaign with nearly $47 million.

In a statement, the campaign called it a “sad day for California” and blamed tobacco companies for a “misinformation campaign.” Proponents vowed to ask voters for another tobacco tax hike in the future.

“We’re certainly not going away,” said Jim Knox of the American Cancer Society. “It’s not going to slow our efforts to battle tobacco companies and cancer. We will be looking for opportunities to do that wherever they may present themselves.”

SACRAMENTO – The California Air Resources Board (ARB) is encouraging small fleet owners of 2010 and older model year 53-foot or longer box-type trailers that operate on California highways to report vehicle information now to gain additional time to comply with the Tractor-Trailer Greenhouse Gas regulation. Small fleets consist of 20 or fewer box-type trailers and can include both dry- and refrigerated-van trailers.

“We have worked hard to streamline the reporting process and make it as convenient as possible for business owners,” said Stephan Lemieux, manager of ARB’s on-road heavy duty diesel section. “By providing the necessary information well in advance of the July 1, 2012 deadline, small fleet owners will avoid the usual last-minute registration rush. They will know with certainty that they have flexibility in complying with the rule and can take more time to meet its requirements if they need to.”

Small fleet owners of 2010 and older model year trailers may choose one of two methods to bring their trailer fleets into compliance. They can:

Ensure their fleet is equipped with U.S. EPA “SmartWay” verified aerodynamic equipment on their trailers, including side skirts and trailer tails, by January 1, 2013, or

They may report by July 1, 2012 to take advantage of the optional phase-in plan, which allows small fleets four years to comply.

Regardless of which method owners choose, they must also install fuel efficient, low-rolling resistance tires on their trailer fleets by January 1, 2017. (For a list of accepted SmartWay verified equipment and to learn more about the SmartWay program, fleet owners can visit here: http://www.epa.gov/smartway/technology/.)

Aerodynamic technologies such as those included in the SmartWay program are designed to help reduce fuel consumption, saving owners money and helping to reduce our nation’s dependence on foreign oil. The program will deliver anticipated savings of about three billion gallons of diesel fuel by 2020 from nationwide operations. As a result, fleet owners can expect to see a quick return on their investment in trailer aerodynamic equipment and fuel efficient tires within one year at current diesel fuel prices, if they travel 100,000 highway miles per year.

The rule is also expected to help combat climate change by reducing carbon dioxide emissions nationwide by 33 million metric tons by 2020.

To report online at Tractor-Trailer Regulation Registration , owners will need to have some key information handy, including the trailer vehicle identification numbers, makes and model years, and license plate numbers. For refrigerated van trailers, the transport refrigeration unit, or TRU, model year and engine model year are both required.

ARB’s mission is to promote and protect public health, welfare, and ecological resources through effective reduction of air pollutants while recognizing and considering effects on the economy. The ARB oversees all air pollution control efforts in California to attain and maintain health based air quality standards.

Please be advised that The State Board of Equalization will be closed on Friday, November 11, 2011 in observance of Veteran’s Day. Thus, stamp purchase orders received after 10:00 am (Pacific Time) Thursday, November 10, 2011 will not be processed until Monday, November 14, 2011.

To ensure an uninterrupted supply of cigarette tax stamps, please place your order with the Stamp Desk at least two business days prior to this holiday date.

The circumcision bill, sponsored by Assemblyman Mike Gatto, aims to ‘protect parental rights and liberties.’ The governor has until Oct. 9 to decide on the many bills on his desk.

Reporting from Sacramento — Local governments will be unable to ban male circumcision under a new state law signed by Gov. Jerry Brown.

The bill, by Assemblyman Mike Gatto (D-Silver Lake), was drafted in response to a proposed San Francisco ballot measure that would have prohibited any foreskin cutting that was not deemed medically necessary in that city. That proposed ordinance was struck from the ballot by a Superior Court judge in June, amid protests from doctors and religious groups. A similar measure was proposed in Santa Monica but was later pulled back by proponents.

Gatto said his measure, signed Sunday, would “protect parental rights and liberties.”

The bill was one of 44 measures approved by Brown, who has hundreds more on his desk that must be approved or vetoed by Oct. 9. Brown also vetoed four bills Sunday.

Among the laws Brown signed was one that creates new penalties for the sale of synthetic cannabis products, which have been sold in convenience stores, tobacco shops and other outlets around the state. By some accounts, the products have effects similar to marijuana.

The penalties for selling synthetic cannabis now outweigh those for selling small quantities of marijuana. Under the law signed by Brown, anyone selling the synthetic product may be fined $1,000 and face up to six months in jail. Sales of less than 28 ounces of marijuana carry no jail time and a maximum fine of $100.

Organized labor scored a victory Sunday with Brown’s signature on a measure to prohibit local officials from imposing bans on union labor agreements for publicly funded construction projects. The measure by Senate leader Darrell Steinberg (D-Sacramento), emerged on the final days of the legislative session and passed through both legislative houses without a single Republican in support.

Opponents of the measure said it would mandate that cities and counties agree to labor contracts on all local building projects, but Brown dismissed those concerns in a signing message Sunday.

“Contrary to what the opponents claim, this bill does not require any local government to adopt” a labor agreement, Brown wrote. “In fact, this bill preserves the right of all sides to debate what obviously is a hotly contested issue. Seems fair to me — even democratic.”

Many significant pieces of legislation are still awaiting Brown’s signature or veto before next Sunday. Among them are a measure that would create up to 100,000 dues-paying union members from the ranks of home child-care workers and another measure that would prohibit ballot initiatives from appearing on primary ballots.

On a rare July day with no budget negotiations to handle, Senate President Pro Tem Darrell Steinberg is heading out to the California State Fair. There he will join Assemblyman Roger Dickinson in honoring students who had perfect attendance in the just-concluded school year.

Hundreds of the 1700 students eligible for the honor are expected to show up. Festivities begin at 11:15 a.m. at the PG&E Stage.

Check in here for Kevin Yamamura’s report on redevelopment agencies’ push to block the state budget and other California news.

Bar Code Readers to be Installed on Existing High Volume Stamp Machines (HVSM)

Through the Request for Proposal process, the Department of General Services (DGS) issued a five-year contract to SICPA Product Security, LLC (SICPA) for California encrypted cigarette tax stamps and related stamping equipment. Under the new contract, existing stamping equipment will be modified so that product code (brand) information will be scanned and recorded through the use of a bar code reader when the tax stamp is applied. The California Cigarette and Tobacco Products Tax Law authorize the State Board of Equalization (BOE) to require the modification of all stamping equipment to allow for the capture of the brand information. This modification will not only benefit the BOE but once the modifications are complete system-wide, it will also benefit cigarette distributors by providing this information to the distributors to assist with preparing their BOE monthly reports. Details on the new features and BOE reporting options available to distributors will follow. Acceptance testing of the new stamping equipment and bar code reader has been performed and the equipment has met all specified requirements. BOE has directed SICPA to begin implementing the stamping machine modifications upon release of this Notice.

To capture brand information and meet contract specifications, a bar code reader will be installed on all existing High Volume Stamp Machines (HVSM) at no cost to the distributor. No additional modifications are required to the HVSM; however, distributors may elect to purchase a new HVSM or choose to upgrade their existing HVSM. The benefits of a new or upgraded HVSM include faster stamping rates, less moving parts, and greater efficiency. The decision to purchase a new HVSM or upgrade an existing HVSM is a business decision, not a BOE requirement. Please contact Sherwin Earl at (703) 440-7791 for an equipment and services price list.

Low Volume Stamping Machines (LVSM) which consist of two component parts, a (Gecko) hand applicator and a scanner, may continue to be used, but the scanner component must be replaced. The existing scanners cannot be modified to meet the new brand information requirements. Therefore, distributors with LVSMs will be given a trade-in credit for their existing scanner toward the lease or purchase of a new scanner. The new LVSM scanners have been fully re-designed and re-engineered for ease of use and efficiency.

A SICPA representative will be contacting all cigarette distributors to schedule the HVSM modifications and LVSM scanner replacements. In order to ensure uninterrupted operations it is essential that the installation schedule is finalized by August 15, 2011.

Please contact Scott Miller at (916) 323-3990 or Scott.Miller@boe.ca.gov if you have questions about the requirements or information contained in this Notice.

The link below is for the proposed regulation changes by CalRecycle on the collection and reporting of CRV. These regulation changes come out of reporting and payment issues by some small distributors in Southern California who failed to pay CRV.

I encourage you all to read these regulations, and forward me your comments. Any comments must be submitted to CalRecycle by August 15, 2011.

Although, a little more work, the benefit of these new regulations will give the department more authority in collecting CRV from companies that are now using the non payment for predatory pricing.

For more information on the CalRecycle proposed regulation changes, click here.

SACRAMENTO – In a YouTube video and veto message released today, Governor Edmund G. Brown, Jr. announced that he will not sign Senate Bill 69 and Assembly Bill 98, which together comprise the state budget passed by the Legislature on June 15, 2011.

In January, I presented a balanced budget solution with a mix of deep spending cuts and temporary tax extensions subject to voter approval. My plan would put these extended revenues in a lockbox, ensuring that they are only used to protect education and public safety. It would also address California’s long term fiscal crisis by substantially paying down the $35 billion wall of debt built up over the last decade.

Yet Republicans in the Legislature blocked the right of the people to vote on this honest, balanced budget.

Meanwhile, Democrats in the Legislature made valiant efforts to address California’s budget crisis by enacting $11 billion in painful cuts and other solutions. I commend them for their tremendous efforts to balance the budget in the absence of Republican cooperation.

Unfortunately, the budget I have received is not a balanced solution. It continues big deficits for years to come and adds billions of dollars of new debt. It also contains legally questionable maneuvers, costly borrowing and unrealistic savings. Finally, it is not financeable and therefore will not allow us to meet our obligations as they occur.

We can – and must – do better. A balanced budget is critical to our economic recovery. I am, once again, calling on Republicans to allow the people of California to vote on tax extensions for a balanced budget and significant reforms. They should also join Democrats in supporting job creation and ending tax breaks for out-of-state companies. If they continue to obstruct a vote, we will be forced to pursue deeper and more destructive cuts to schools and public safety– a tragedy for which Republicans will bear full responsibility.

It is with deep regrets that the Board of Directors of the California Distributors Association notes the passing of Lincoln Ball. Mr. Ball was one of the founding members of CDA. He was preceded in death by his wife, Judy Ball and his brother, Halcyon Ball.

Mr. Ball is survived by his three daughters, Laura Sanders and husband Michael, Lucinda Bennett and Andrea Ball; grandchildren Mollie Bennett and husband
Brandon Pettis, Joshua Bennett and wife Lisa, Emily Sanders, Katie Sanders and husband Chris Elg, and Lucy Sanders; great grandchildren Trevor, Ben, Olivia, and Oliver, as well as numerous cousins, nieces, nephews, and close friends, known as the EBF (Extended Ball Family), a phrase he coined.

A celebration of life will be held on Sunday, May 29th from noon-3:00 at Old Ranch Country Club, 3901 Lampson Ave, Seal Beach, CA 90740